Irisity (IRIS) Q3 2025 earnings summary

Executive summary

• Leadership transition with CFO Gustav Zaar appointed as Interim CEO to drive transformation and cost reduction initiatives.

• Strategic focus on achieving cash flow neutrality in 2026, streamlining operations, and increasing recurring revenue.

• Several key customer wins and contract renewals, including a U.S. federal agency and a major New York transportation client.

Financial highlights

• Q3 2025 net sales were MSEK 24.6, down from MSEK 30.3 in Q3 2024; nine-month net sales were MSEK 60.7, down from MSEK 83.7.

• Gross margin for Q3 was 81.5% (85.2% last year); nine-month gross margin was 76.3% (81.3%).

• Q3 EBITDA improved to MSEK -7.5 from MSEK -14.3 YoY; nine-month EBITDA was MSEK -38.3 (-29.0).

• Result after tax for Q3 was MSEK -35.4 (-45.5); for nine months, MSEK -122.8 (-117.2).

• Cash and available credit lines at quarter-end were MSEK 5.5 (6.8).

Outlook and guidance

• Expectation of stronger YoY net sales growth in Q4 2025 due to timing effects in revenue recognition.

• Ongoing cost reduction program targeting a 30% OPEX reduction compared to Q2 2025, with full impact visible from Q2 2026.

• Continued focus on growing monthly recurring revenue and achieving cash flow neutrality in 2026.